project report.docx
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Pepsi survey project
PROJECT REPORT
ON
SURVEY OF RETAILERS
&
CONSUMER OF SOFT DRINKS
Under Guidance of :
Submitted By:-
A
PROJECT REPORT
ON
SURVEY OF RETAILERS
&
CONSUMER OF SOFT DRINKS
ICFAI UNIVERSITY JHARKHAND
NATIONAL COLLEGE
RANCHI
SUBMITED BY :
ENROLLMENT NO:
COURSE :
PREFACE
Practical training I considered to be an essential part of all
institution and those who are aspiring for (BBA)this project is
done in field of marketing.
As aspect of Management education which is receiving attending of
the evolution of the practical training is to be bring actual
environment in touch of Business Management , It is rigidly
accepted that the theory widen ones thinking viz.Concept of
Marketing philosophies , but practice indicates the modern
marketing is used widely in selling a variety of products.
This project works has been done under the kind permission of
distributors of Jamshedpur.
I have done my summer training in Jamshedpur under the supervision
of the executives of SMV Beverage Pvt. Ltd.
This is Franchise owned bottling plant of PepsiCo India Limited.
The bottling plant is located at Adityapur Industrial Area.
(Adityapur)
This report give,true picture of the sales of Pepsis product ,Since
I have the training in Jamshedpur, hence the result of study is
particularly in Jamshedpur.
DECLARATION
I, . here by declare that the project report written and submitted
to S.M.V.BEVERAGES PVT.LTD.by me is my own and its equal copy has
not been reproduced to any other institution published anywhere
else.
I understand that such reproducing is liable for punishment in any
way the Insitituion fit.
Place:
Date :
ACKNOWLEDGEMENT
There is always a sense of gratitude one expresses to others for
the helpful and needy service they render during all phases of
life. I am doing this training with the help of different
personalities. I wish to express my gratitude towards all of
them.
It gives me immense pleasure to express my deep regards and sincere
sense of gratitude to . for his guidance throughout the training I
am undergoing. Thank you sir for your able and worthy guidance. I
would also like to thank for their support which helped me
throughout the training I am undergoing.
I would also like to thank my teacher . for steering my confidence
and capability for giving me insight into training by giving me
exposure to the arena of competitive and real world.
Lastly I would like to thanks my parents and friends for their
constant support during the training.
CONTENT
EXECUTIVE SUMMARY
3C REPORT
HISTORY OF PEPSI 2. SMV BEVERAGES Ltd. 3. STRUCTURE OF ORGANIZATION
4. PRODUCT 5. PRODUCTION PROCESS 6. CUSTOMER 7. COMPETITOR
OBJECTIVE OF PROJECT
METHODOLOGY
QUESTTIONAIRE
PROBLEM FACED
MARKET SURVEY
DEALER SURVEY
ADVERTISEMENT
PEPSI PROMOTION
MARKET SHARE
DATA COLLECTED
DATA ANALYSIS
FINDINGS
CONCLUSION
RECOMMENDATION
BIBLIOGRAPHY
CONTENT
EXECUTIVE SUMMARY
3C REPORT
HISTORY OF PEPSI 8. SMV BEVERAGES Ltd. 9. STRUCTURE OF ORGANIZATION
10. PRODUCT 11. PRODUCTION PROCESS 12. CUSTOMER 13. COMPETITOR
OBJECTIVE OF PROJECT
METHODOLOGY
QUESTTIONAIRE
PROBLEM FACED
MARKET SURVEY
DEALER SURVEY
ADVERTISEMENT
PEPSI PROMOTION
MARKET SHARE
DATA ANALYSIS
FINDINGS
SWOT ANALYSIS
CONCLUSION
RECOMMENDATION
BIBLIOGRAPHY
Executive Summary
This project is mainly based on the survey of different localities
as why Pepsi is the taste of of different customers, who are the
competitors of pepsi and what is the position of pepsi in the
market. We found that Coca Cola is the only competitor of pepsi.
After 2002 pepsi os leading very far as compared to its competitor.
The demand of pepsi is very high in the market. Cokes basic
strength is its brand name but pepsi by its new ideas in promoting
its brand, good packaging of its products and above all the taste
makes it No. 1 in the market.
Analysis of pepsi and dealer are done to get the information about
the basic idea of the position of pepsi in comsumer and
retailer.
HISTORY OF PEPSICO
IN THE YEAR 1898, ONE OF CALEBS FORMULATION, KNOWN AS BRADS DRINK,
A COMBINATION OF CARBONATED WATER, SUGAR VANILLA, RARE OILS AND
COLA NUTS IS RENAMED PEPSI COLA ON AUGUST 28, 1898. PEPSI COLA
RECEIVES ITS FIRST LOGO. 14. IN 1902, BR ADHAM APPLIES FOR A
TRADEMARK WITH THE U.S. PATENT OFFICE WASHINGTON D.C AND FORMS THE
FIRST PEPSI COLA COMPANY 15. IN 1905, PEPSI COLAS FIRST BOTTLING
FRANCHISES ARE ESTABLISHED IN CHARLOTTE AND DURHAM, COMPETITIVE
COLAS. 16. IN 1941, THE NEW YORK STOCK EXCHANGE TRADES PEPSIS STOCK
FOR THE FIRST TIME. IN SUPPORT OF THE WAR EFFORT, PEPSI BOTTLE
CROWN COLOUR CHANGE TO RED WHITE AND BLUE. 17. IN 1960, YOUNG
ADULTS BECOME THE TARGET CONSUMERS AND PEPSIS ADVERTISING KEEPS
PACE WITH NOW ITS PEPSI, FOR THOSE WHO THINK YOUNG. 18. IN 1970,
PEPSI INTRODUCES THE INDUSTRYS FIRST TWO (2)-LITERS BOTTLES. PEPSI
IS ALSO THE FIRST COMPANY TO RESPOND TO CONSUMER PREFERENCE WITH
LIGHT WEIGHT, REOYCLABLE, PLASTIC BOTTLES. 19. IN 1984, PEPSI
ADVERTISING TAKES A DRAMATICS TURN AS PEPSI BECOMES THE CHOICE OF A
NEW GENERATION. 20. IN 1991,PEPSI INTRODUCES THE FIRST BEVERAGES
BOTTLES CONTAINING RECYCLED POLYETHYLENETEREPHY THALATE (OR PET)
INTO THE MARKET PLACES. THE DEVELOPMENT MARKS THE FIRST TIME
RECYCLED PLASTIC IS USED IN DIRECT CONTACT WITH FOOD IN PACKAGING.
21. IN 1992, PEPSI COLA AND LIPTON TEA PARTNERSHIP IS FORMED. PEPSI
WILL DISTRIBUT SINGLE SERVE LIPTON ORIGINAL AND LIPTON BRISK
PRODUCTS. 22. IN 1994, PEPSI -FOOD INTERNATIONAL AND PEPSI -COLA
INTERNATIONAL MERGE, CREATING THE PEPSICO FOODS AND BEVERAGE
COMPANY. 23. IN 1997, PEPSICO ANNOUNCES THAT IT WILL SPIN OFF ITS
RESTAURANTD DIVISION TO FORM TRICON GLOBAL RESTAURANT, INC.
INCLUDING PIZZAHUT, TACO BELL AND KFC. IT WILL BE THE LARGEST
RESTAURENT COMPANY IN THE WORLD IN UNITS AND SECOND LARGEST IN
SALES. 24. IN 1998, PEPSI CELEBRATES ITS 100 th ANNIVERSARY. 25. IN
2006, PEPSICO ACQUIRED IZZE BEVERAGE COMPANYN NAKED JUICE AND
STACYS PITA CHIP COMPANY IN THE US, STAR FOOD IN POLAND, AND
BLUEBIRD FOOD IN NEW ZELAND. IT HAS EXPANDED ITS PRESENCE IN THE
NON-CARBONATED DRINKS AS WELL AS SNACKS. 26. IN 2006, THE COMPANYS
VOLUME GREW BY 5.5%, COMPARED WITH 2005 IN 2007, THE COMPANY PLANS
TO EXPAND ITS MARKET SHARE THROUGH FURTHER ACQUISITION AND JOINT
VENTURES.SMV BEVERAGES LTD.
S.M.V. Beverage Pvt. Ltd, Adityapur, (Jamshedpur) a medium sector
enterprise, located amidst beautiful surroundings, on the TATA
Kandra road in the Adityapur Industrial Area, and producing PEPSI
range of bottled soft drinks, viz. Pepsi, 7 Up, Mirinda, Teem,
Mirinda Lemon, Mirinda Apple and Lehar Slice and had become a
household word in the Jharkhand State symbolizing achievement and
advancement over the years.
Steel City Beverages was established in 1967 and production
commenced in March 1969. At the very outset the company installed
state the art machines and technology, for the production and
bottling of soft drinks. The bottling plat with a capacity of
produce bottle 220 per minute is totally automatic and also had a
modern state of the art inter mix machine for binging forth the
right blend of flavors. The company continuous to adopt and
innovate technology in keeping with its policy of constant quality
improvements. With the advent Pepsi Food Limited for the production
and sales of Pepsi range of soft drinks for Jharkhand.
The company symbolizes self reliant in technology and ranked as the
Best bottling company in the country in terms of Quality,
Efficiency, Sale, Productivity and KRD. Till 1998, it was under the
guidance of its Chairperson, Smt. Kusum Kamani and the able
stewardship of its Managing Director, Shri. Nakul Kamani, the Co.
has consistently bagged on numerous occasions, awards for Quality
Assurance and Productivity, in 1993 it bagged top honors for being
the best Quality conscious Plat amongst all Pepsi Bottling
companies in India.
In March 1999, Steel City Beverages Ltd. was taken over by Mr. S.
K. Jaipuria from Mr. N.D. Kamani, along with Rushabh Marketing
Ltd., a marketing unit. Mr. S.K. Jaipuria started running this
plant very successfully. He was very much enthusiastic to increase
the production and sale and to capture the whole market of
Jharkhand. He established another plant in the name of SMV
Beverages (Jsr) and increased the production from this new plant.
The capacity of this new plant is 600 bottles per minute.
Simultaneously, another marketing, company came up in the name of
Hyderabad Marketing Company, Which is catering the need of whole of
Jharkhand state.
The Companys highly sophisticated plant and quality control
laboratory along with the dedication and enterprise of its
employees is more than evenly matched by the managements sense of
understanding and compassion that has insured the companys progress
with every passing day.
The company has a sale of more than 24 million bottles. It has
maintained and nurtured a vast network of distribution for its
product in Jharkhand and currently holds way over more than 50% of
the states consumer soft drinks market with an estimated growth
annual turnover of over Rs. 10 corers. The company is currently in
pursuit of the coveted ISO9002, which it is confident of achieving
and would hence become the first food product factory in India to
do so.
STRUCTURE OF THE ORGANIZATION
For the every concern a structure is necessary on which the
complete organization should be founded. To have a structure is not
a choice of the organizer. The choice is only of the form and
pattern of the organization. Planned organizational structure may
be proved logical clear cut and streamlined in order to meet the
present requirements. Otherwise it will merely be a makeshift
arrangement and the management in rendered difficult and
ineffective because organizational structure affects everyone in
the organization. A good organizational structure facilitates
efficient management and the operation of enterprise and it
encourages growth. It helps organization to reach its predetermined
goal.
In order to make the organizational structure more effectible one
structure that can meet the demand of various factors namely
environment, technology, size and people. SMV Beverages (Jsr) has
duly considered these factors to build and efficient organization
structure. As it is a medium scale enterprise and fully automatic,
the manpower requirement is less. Hence, like any contemporary
company, it has adopted a flat structure.
Following are the major features of the organizational structure of
SMV Beverages Ltd.
Clear lines of authority.
Adequate delegation of authority.
Minimum Managerial skill level.
Unity of Directors.
Applications of ultimate responsibility.
Span of control.
Simplicity.
Flexibility.
Due consideration for top groups.
SMV Beverages (Jsr) has a management board headed by its unit
manger & Director Mr. P.S. Kumar. He is responsible for overall
policies regarding managerial decisions and all the executive
functions. He looks after all the functional departments like
productions, Sales, account, personnel & purchase. Every
department is headed by their respective managers who sends reports
to the unit manager and are responsible to him in every sense of
working.
The Plant Manager is the head of the production department. He
looks after production i.e. bottling process, inspection, and
storage of new materials and maintenance of the plant as a whole.
He also Heads the quality control department through quality
control manager.
The controller of accounts heads the accounts department; under him
there is a chief accountant. The purchase officer is in charge of
all purchase activity of concern. PAC (Product availability
Co-ordinator) is in charge of shipping department, coolers and
PMX.
Personnel department is headed by the personnel manager and looks
after the function of administration, industrial relation, legal
jobs, security welfare etc.
The HMC Hyderabad Marketing Company In these two units, the Head of
Sale and Marketing is in charge of all the marketing activities
i.e. sales promotion, publicity, advertisement, market survey, and
shipping. Though his main function is to have a control over the
outlets distribution, Sales Manager is assisted by sales executive
and sale supervisor.
PRODUCT
PRODUCT IN JAMSHEDPUR
PEPSI 27. PEPSI DIET 28. MIRINDA 29. 7 UP 30. MOUNTAIN DEW 31.
SLICE 32. AQUAFINA 33. TROPICANA TWISTER 34. LEHAR SODA 35.
NIMBOOZPRODUCTION PROCESS
The bottling process at STEEL CITY BEVERAGES is automatic. The
various units of this plant are:
WATER TREATMENT UNIT
Water in the STEEL CITY BEVERAGES LTD. Come from Sitarampur dam and
is stored in a reservoir. Before ensuring production, this raw
water is treated in the water treatment plant.The process involved
is known as coagulation process. Main chemicals, which are used,
are ferrous Sulphate (FeSo4), calcium hydroxide (CaOH) and chlorine
(Cl). Initially water is treated with all these chemicals in the
treatment tank and becomes turbid. All impurities get settled at
the base and remove the turbidity. Next it is sent to a sand filter
to remove the turbidity. Then it is sent to the CARBON TANK where
all the microorganism and chlorine is removed the water so obtained
is completely free from any king of impurity and is ready to be
used in further processing the maximum alkalinity is maintained
until it is as much as 50 p.p.m.
ROLL CONVEYOR
This automatic operation machine takes the dirty empty bottles for
washing. A person is required to put the empty bottles on the
roller conveyor.
CLEANING (THE BOTTLES) UNIT
Used bottles returning from the market are stealthy. It is
completely an outer process, which takes place within a machine.
The machine has three compartments. Bottles for washing placed on
conveyor come inside the machine and get successive treatment.
Bottles are treated with 4% caustic soda in the frost compartment
at the temperature, 100-115F. Next these are conveyed to the second
compartment where bottles are again treated with 2% caustic soda at
the temperature 120F. In the third compartment bottles are treated
with sort ware. Time duration in the each compartment is 10
minutes.
CONVEYOR CHAIN
These are for the movement of sterilized empty, filled and crowned
bottles.
LIGHT SCREEN
To check if any dirty part is unwashed in the sterilized bottles,
which are coming through conveyor chain? This checking is again
crowning.
SYRUP ROOM
Syrup room is situated on the first floor. Here syrup is prepared
from filtered water, sugar and the concentrate. The room is well
equipped with several tanks and filter press. The first one is
heating tank is which syrup is actually prepared. Calculated amount
of sugar along with concentrate and water is heated up to 850C.
Thus a saturated solution is prepared. Next it is sent through a
machine called filter press.
FILLER MACHINE
Washed empty bottles enter into this through conveyor chain and
then they are filled with exact quantity of beverages.
CROWNER
The filled bottles are crowned with metallic caps to protect the
purity of content. Then the bottles are given the batch no., year,
etc. with the help of laser machine.
Thus the whole process from washing to crowning is automatic. The
filled bottles are lifted manually from conveyor and placed in
crates. The bottling of beverages is carried out at a rate of 240
bottles/min. The new bottling unit has been established in order to
pace the bottling process in the month of February. After
establishing the now production unit the rate per minute raised to
600. Before it was 440 bottles per minute.
DISTRIBUTION CHANNEL OF SMV BEVERAGES LTD.
Channel of distribution followed by the SMV Beverages Pvt.
Ltd.
The channel of distribution is one of the essential activities,
which is the responsibility of the sales department. The best
alternative strategy is followed by the sales department of SMV
Beverages private limited to distribute the processed soft drink so
that product is available at right time and at right price. The
company uses the following marketing distribution channel: -
Manufacturing UnitDistributor or Whole sellerRetailer or OutletEnd
Users
The product after processing is firstly supplied to the distributor
or wholesalers from the plant or manufacturing unit. The whole area
in around Ranchi is divided into the several zones and routes. Thus
the retailer cannot take the delivery directly from the
manufacturing unit. They have to take it from their respective
distributor in the particular zone of route. The distributors are
selected on the basis of assurance given by them regarding the
minimum sales, which they have targeted annually. Depending upon
the market each distributor in its initial stage has deposited some
security money this amount varies between the
distributor-to-distributor and area-to-area. There is not any fixed
criterion for retailer or outlet but some time its selection is
dome on the basis of sales of caret per day. There is no direct
relationship between the retailer and the company.
There are lots many of exclusive outlet which is given more
preference in order to meet product available. Most of the retailer
are beetle shop, restaurant, grocery shop, STD booth, Medicine
shops etc. who are having the stall for the sales soft drinks.
These retailers have to give the assurance to the concerning
distributor for better sales and the time of thanking delivery.
They have deposited the security for the empty carets with
specified retailer purchasing price. The distributors at first have
to seek the permission of the sales department for the number of
cases of soft drinks required by them. After getting the proper
authority from the sales department the distributor then sent their
delivery through route vehicles to the respective outlets that so
ever have paid the requisite sum of money either by cash or draft
and deliver the filled carats and get back the empty carats.
Decisions with respect to distribution channel focus on making the
product available in adequate quantities at places where customers
are normally expected to shop for them to satisfy their needs.
Depending on the nature of the product, marketing management
decides to put into place an exclusive, selective or intensive
network of distribution, while selecting the appropriate dealers or
wholesalers.
Direct Distribution:
Delivery of post mix cylinders & handling of key accounts: the
key accounts are different wholesalers, restaurants and hotels like
Pizza Hut, KFC, Metro which serve as a place for key sale. These
are known as national key accounts and are very important in term
of competition.
Export Parties
Indirect Distribution:
Through base market distributors
Through outstation distribution
Before delivering the product some certain guiding principles are
followed for the assessment of distributors capacity:
Applicant must have 20 to 25 vehicles (depending on the area)
Applicant must have 20,000 cases of empty bottles
Applicant must deposit Rs. 1,00,000 as a security
This is usually done through taking over key revenue areas. If the
distributor does not achieve its sales target, the distribution is
taken back and an addition of new distributor is done. Therefore
Pepsis supply is low supply uncertainty. Some of its supply source
capabilities are:
Less breakdowns
High quality
Flexible supply capacity
Mature production process
CUSTOMER
In Tier 1, 2 and 3 cities in India, 29% of Indian consumers report
consuming carbonated beverages/soft drinks during a fixed time of
the day suggesting consumption has become a routine part of their
day, with most consumption taking place during the 'afternoon to
evening' time period. Not surprisingly, consumption is highest in
Tier I cities such as Mumbai, Delhi, Kolkata, Chennai, Hyderabad
and Bangalore. The level of consumption is seen to increase with
rising household incomes (with the exception of the highest income
level) while decreasing with age.
The Indian soft drinks market is not under any regulation.
Prevention of Food adulteration act 1954 does not include soft
drinks. None of the BIS standards that existed before August 2003
had any guidelines or set criteria for the residue levels of
pesticides in the soft drinks. But different lie agencies have set
standards for the residue levels of pesticides. The European
Economic Community (EEC) sets the maximum admissible concentration
of individual pesticides and related products in drinking water at
0.1 parts per billion to ensure that the toxicity is not dangerous
to human beings. For a few pesticides like aldrin, dieldin and
heptachlor epoxide the admissible limit is even more stringent,
i.e., 0.03 parts per billion.
He is the person who is selling the same type of product in the
market.The marketing concept states that to be successful, a
company must provide greater customer value and satisfaction than
its competitors do.
COMPETITOR
Pepsi has a tough competition with Coca Cola while it faces a
little competition with the local producers like RC Cola, Shandi
Cola etc. The local producers hardly affect the sales of Pepsi in
the market.
There are different types of competitor in the market. Some of them
in which our product lies are discussed below:
Close Vs Distant Competitor:
Pepsi and Coke are close competitors. It means that both have
direct competition in the market, their products are close
substitutes for one another. Both the products can influence the
market share of one another through effective strategies made to
cope up with their competitors.
Pepsi cola and Nestle juice are distant competitors of one another.
It means that their products satisfy the same want but they are in
indirect competition with one another.
Strong Vs Weak:
Coca Cola and Pepsi are strong competitors. Pepsi is the market
leader and Coca Cola is its competitor. The Pepsi makes defense
strategies so that it can maintain its position in the market.
While Coca Cola is a challenger and it makes attack strategies so
that it can become the market leader.
Pepsi and Shandi Cola are weak competitors. Pepsi is the market
leader and Shandi Cola is the follower. Pepsi is not in direct
competition with the Shandi Cola. It means that Shandi Cola has
little effect on the sales of Pepsi.
Pepsi Cola is situated in an industry that is dominated by two
competitors, Coca-Cola and of course themselves. Although Pepsi and
Coke basically go after all consumers who purchase soft drink
beverages Coca-Cola targets its products at the head of
household.
This is evident in many of the ad campaigns such as Always Coca -
Cola which refers to the traditional beverage heritige of its
product. They also reinforce this in the name Coca-Cola Classic
which is inferring to the older consumer. This name reflects an
image of value, reliabilty, and old time values. Pepsi Cola
throughout its 100 years of existence has developed many strengths.
One of the strengths that has developed Pepsi into such a large
corporation is a strong franchise system.
They have also made wise investments in snack food companies like
Frito Lay, which at present time is the largest snack company in
the world. Probably high on the list of strengths is Pepsis
beverage line up. Pepsi has four soft drinks in the top ten
beverages in the world. These brands are Pepsi, Mountain Dew, Diet
Pepsi, and Caffeine Free Diet Pepsi. Pepsi also has the #1 tea in
the United States, Lipton Tea. Some other strong brands are All
Sport, Slice, Tropicana, Starbucks, Aquafina and a license
agreement with Ocean Spray juices. Pepsi Cola like any company has
weaknesses. Ironically, the one strength that has been credited for
most of its success in the past has now become a weakness for
Pepsi. This former strength is the franchise system. The franchise
system in Pepsi Corporate view has become a liability. Pepsi in
todays market must be able to act as one instead of several
separate units. The franchise system has become a hurdle to Pepsi
because many of these franchises have become very strong and will
not be dictated by PepsiCo on how to handle their operations. Some
of these franchises are unwilling to support certain Pepsi products
and at times produce their own private label products that are in
direct competition with Pepsi products. Secondly the franchisees
are not willing to make capital expenditures to keep up with
Coca-Cola who is a firm believer in reinvesting into their
infrastructure (Coca Cola at present time does not operate a
franchise bottling system). Another weakness that Pepsi is inferior
is in the fountain soft drink division. This has always been a
problem for Pepsi because of their ownership in fast food
restaurants. Coca Cola has for years been in the top locations for
fountain beverages because they simply tell the account Pepsi is
their competition because of their ownership in Taco Bell, Pizza
Hut, KFC, and many others. As mentioned earlier Pepsi has tried to
eleiviate this problem by spinning off their interest in fast food
restaurants but at present time are still guilty by association to
many of the large fountain accounts. The franchise system has also
effected fountain sales due to the fact franchisees are not willing
to by expensive fountain equipment to placed in accounts mainly
because the profit margin is so low and could take years to recoup
their investment. Pepsi also has a weakness in the international
beverage market. Unfortunately for Pepsi they were a Johnny Come
Lately into this arena. Pepsi has tried to enter this market by
trying to do in three years what took Coke 50 years to do. This
area will take years for Pepsi to mature simply due to Cokes
dominance in the international market and the strong ties that Coke
has developed with these markets and their governments. Pepsi
customers buy nearly five billion gallons of soft drinks per year.
Pepsi customers buy their products because of taste, price,
packaging, promotional factors and of a wide variety of brands.
Pepsi customers also buy their products due to the high
accessibility of Pepsi brands. Pepsi products are distributed to
many outlets. For example, supermarkets where Pepsi buys large
shelf area and display areas so the customer can find them easier,
Convenience stores, gas stations, delis, restaurants, movie
theaters and almost and other conceivable spot. Pepsi has a
competitive advantage over Coke because of the image it portrays.
Pepsi promotes itself as the choice of the New Generation. Pepsi
gets this advantage by implementing such large marketing projects
like Project Globe.
OBJECTIVE
Whatever we have learned in our courseware can only be more
effective when we know how to apply them in real practice.
Application of theoretical learning to the practical exposure leads
to further learning. Here the main objective of internship is to
apply the theories and skills learned, practically in an
organization, and be open to learn more.
The objective behind doing (SIP) is to get first Corporate exposure
where we can apply our theoretical knowledge, learned in our
courseware till now ,and get a closure look to the Work Cultureand
learn Corporate Ethics. This is supposed to be beneficial for us in
future when we will start working with an organization , after
completion of our course.
As an intern we can develop knowledge , competencies and real time
corporate experience, which directly make an impact on setting our
career goal.
Beside working on the project during (SIP) .we also get opportunity
to link with the employees of the organization. There are numerous
things which helped us in improving our educational , professional
and social network to set the things done in a right and systematic
manner.We come to know how to make long term relation with
others.
To know the consumer preferences. 36. To know the percentage share
of pepsis cooling equipments. 37. To know the market share of
pepsis product. 38. To know the distribution methods adopted by the
organization. 39. METHODOLOGY
The different methodologies that I used to collect data from
different places are given under:-
I have done market survey for collection of primary data. 40. I use
net to collect the information of PepsiCo. 41. I also got secondary
data from PepsiCo official. 42. I also know various things from
shopkeeper. 43. I also got information from the
customer.Commencement of Fieldwork :
The fieldwork include the process of getting the questionnaires
filled up and also getting all the relevant information regarding
the visibility of Pepsi for future business decisions.
My fieldworks included extensive coverage of the following areas
:-
Adityapur
Nit Road 44. Rit 45. Dandli basti 46. Shere Punjab chowk 47. S
.Type 48. Main road 49. Pan dukan chowk 50. Thana road 51. Dindli
Basti 52. Majhi Tola 53. Saldis Basti 54. Ashiyana Road 55. Nishant
Vihar 56. Kalpanapuri Road 57. Near Shiva Narshing Home 58. Idtr
ComplexMy data collection process include in-debth interviews with
the dealers and consumers getting as much as relevant information
as could be.
Method of studyI have divided my all study into three phases which
are :
Outlet survey
Product survey
Stock keeping Survey
QUESTIONNAIRE
QUESTIONNAIRE FOR RETAILERS:
Name of the shop/outlet:
..................................................................
Address/Location :
.......................................................................
Type of outlet :
..............................................................
(a) General Store (b) Pan Shop
(c) Sweet Shop(d) Lassi /Juice Shop
(e) Dhaba /Canteen(f) Others
l .Q. Which brand of soft drinks you deal in ?
(a) Pepsi (b) Coca-cola
(c) Both (d) Other
2.Q. Which brand of cola provides you better facility ?
(a) Pepsi (b)Coca-cola (c) Both
3.Q. How many crates of Pepsi & Coca-Cola you sell/day ?
(a) 0-1 crates (b) 1-2 crates
(c) 2-3 crates (d) 3 & above
4.Q. Which companys signage you have in your outlet ?
(a) Pepsi (b) Coca-Cola
(c) Both (d) No signage
5.Q. Which companys visi - cooler you have in your outlet?
Pepsi(b) Coca-Cola(c) both
(d) Own(e) Mixed
6.Q.What kind of promotional activities affect sale mostly?
(a) Free bottle scheme(b) Prize
(c) Discount Crates
7.QContact person & contact number for further queries?
.
8Q.How many VG coolers of pepsi & Coke in your outlet? 59.
Pepsi Coke Own9Q.Service frequency of the Van in your outlets of
Pepsi & Coke?
..
10Q.Which company, Pepsi or Coke gives more schemes?
PROBLEM FACED
1.We have done our market survey only in the Peak season.
2.51 days are very less to know the each and every aspect of
marketing activities.
3.Respondents covered by us could not give the accurate result it
only provide some idea.
MARKET SURVEY
One of the most effective tools of the market research technique is
Market survey. We can know the actual facts and figures regarding.
The product through market survey.
Any business organisation has to sell its product in the market.
The largest share of market a company has the better its profit
margin will be. To increase the market share the company should
come out with a product which best satisfies the customer
need.
To find out the customer need and market demand the company should
survey the market and the process is knows as market survey.
Based on this survey the company goes for following function.
1.Market Development Function.
2.Product Development Function.
The Report on over all Marketing activities in Ranchi is based on
two different types of survey:-
Retailer Survey.
The retailer survey as the word indicates is the survey of every
retailers of soft drink in the area. For my practical purpose the
dealer only includes the authorized dealer appointed by the
company, but it also includes the retailer- big or small grocery
shops, stationary, restaurant, betel shop etc. beside these, the
various exclusive stalls and sales of pantry cars also included in
it. In a nutshell, by dealer we mean, those who are dealing in soft
drink in some way or the other, in large our study, directly or
indirectly.
Thus our study includes all such dealers. EDS includes various
aspects:
Route-wise no. of dealers
Crate strength
Per day sales
Chilling aid
Advertisement
Nature of outlets
Scheme and pay-offs etc.
While conducting the survey of dealers, a format was provided to
me, which ask to fill up by the dealer so that it meets the
requirements of the organization. The dealer survey as mentioned
earlier includes a variety of dealers.
DEALER SURVEY
since Retailers/Dealers are supposed to be very close to the
consumer. They can know the choice and taste of a consumer very
well.The following important information we come to know by Dealer/
Retailer Survey.
Market position of Pepsi
Distribution effectiveness.
Price effectiveness.
Service of chilling equipments
Schemes Availability.
In Ranchi 3 me have survey all parts of this small town
In Ranchi 3 area Karamtoli to Booty More and on the national
highway Booty more to Chutupalu.
We have surveyed about 120 outlets/Shops in jamshedpur.
1.Market Position of Pepsi.
From our survey we find that Pepsi faces a tough competition from
its rival Company Coca-Cola. Thumps-Up a product of the Coca-Cola
Company gives a stiff competition to Pepsi. We find that Thumps-up
gives a tough competition to Pepsi Cola.
Sprite gives a tough competition to Mountain Dew. But Dew is also
is saleable than sprite.
Mirinda and slice is also more Saleable than Maaza. Because of the
better taste slice is more demanded in the market.
The Customers of slice includes the females and middle aged
persons; who just want to taste the Mango Juice.
Mirinda is also more demanded by the female consumers.
On the basis of the survey we come to know that it is due to the
sweetness of Pepsi which makes its market power a weaker one. On
the other hand Thumps-up hardness gives it more value at the
market.
2.Distribution effectiveness :-
We find that the summer season is the Peak season for the Cold
Drinks. That's why a special case should be taken for the
distribution of Pepsi products. These includes that the supply
should be regular.
Irregular supply effects the marketing of Pepsi. The Retailers says
that it is upto then for the selling of a product. Whatever product
is available to them they will sell that item. if Coca cola- supply
is regular they can sell the Cola-Cola product if the Pepsi supply
is not regular and good. That's why the Retailer wants the regular
supply and best service from the company during the peak
reason.
"From our survey we found that the supply of Pepsi products is
regular. Although in some areas like. Imlichowk dandlibasti saldis
basti the supply is not regular because of less number of vehicals.
The Retailers, however, manages to get Pepsi from other other side
dealer.
We find that during the peak season sometimes supply problem
occurs. But according to my thinking the main reason of irregular
supply is shortage of pepsi products in distributor godown.
However, Retailers also know that the supply sometimes hampers
during the peak season.
Price Effectiveness :-
From our survey with regard to price we come to know that the
increase in price of 200ml (Pepsi) does effect the selling of
Pepsi. However this increase in price does not effect too much to
the selling of Pepsi Products. However, the price is same as that
of the Coca-Cola products. Hence we find that the increase in price
affects the marketing of both the products i.e. Pepsi and
Coca-Cola.
4.SERVICE OF CHILLING EQUIPMENT OF PEPSI :-
The service of Chilling equipment of Pepsi is not satisfactory to
all the users/Retailers/Shopkeeper.The mechanic of the company is
not regular at the place where required.
Retailer/Dealers/Shopkeepers complains about the less cooling of
Pepsi freeze. But they satisfied from the cooling equipments of
Pepsi.
5.SCHEME AVAILABILITY :-
We find that the dealers guts the schemes regularly. These Schemes
lead to the more selling of Pepsi products. The dealers Say that
schemes provided by the Company, encourages them to sell the Pepsi
products more and more, however, sometimes. The retailers cannot
know about the schemes because the schemes are of very short
period.
That's why they want to know about. The exact information and
timing of Schemes. So that they can avail these scheme.
MARKET SHARE OF VISI COOLER
Chilling equipment is an important factor for selling soft &
cold drinks.Without freeze & VISI cooler the sale of soft
drinks is not possible. Every dealer has an chilling equipment. In
some cases company also provide chilling equipment. Company
whatever provide chilling equipment it is totally different from
general freeze. In this case the freeze outsider has advertise the
product e.g Pepsi Dew 7up slice etc. for e.g in a market one of the
dealer has good sales of soft drinks. He has 4ct , 3ct , 4ct
various type or flavour soft drinks. His visi cooler has not
sufficient space to chilled the all product at a time. He tell the
problem to the company and request that to provide a visi cooler.
Companies employee come to the dealer and analyze that it is
necessary to provide a visi cooler or not. Then company provides
the visi cooler to the dealer.
Market share of visi coolerSL.NOCompanyEst Mark.
Share1Pepsi54.50%2CocaCola45.50%
This is one of the most important supports for the dealers which
help them to keep the product chilled and freash.
ADVERTISING
Advertising is any paid form of non-personal mass communication
through various media to present and promote product, services and
ideas etc. by an identified sponsor.
PepsiCo has advertised its products through many different ways and
media. Through TV we have seen different advertisement of its
products such as Pepsi or Dew. PepsiCo also advertise its products
by targeting those favourable television programs, like sports,
series and also PepsiCo uses some events like Pepsify Karogey? to
promote its products.
Through newspapers like Jung and Dawn, PepsiCo has advertised a
wide range of products its offers to its customers. And also
through Posters a message has been sent to lot of people to be
aware of the products which PepsiCo offers.
PEPSI PROMOTION
Promotion is a key element of marketing program and is concerned
with effectively and efficiently communicating the decisions of
marketing strategy, to favourably influence target customers
perceptions to facilitate exchange between the marketer and the
customer that may satisfy the objective of both customer and the
company.
A Companys promotional efforts are the only controllable means to
create awareness among publics about itself, the products and
services it offers, their features and influence their attitudes
favourably.
OVERALL MARKET SHARE
1.COCA-COLA 43.9%
2. PEPSI COLA 30.9%
3. CADBURY SCHWEPPES 14.5%
BREAKDOWN OF MARKET SHARE
1. COCA-COLA CLASSIC 20.6%
2. PEPSI COLA 14.5%
3. DIET COKE 8.5%
4. MOUNTAIN DEW 6.3%
5. SPRITE 6.2%
6. DIET PEPSI 5.9%
7. 7-UP 2.3%
8. CAFFIENE FREE DIET COKE 1.8%
9. CAFFIENE FREE DIET PEPSI 1.0%
10. DR. PEPPER 0.6%
FOUNTAIN SALES (FOUNTAIN SALES ARE CREDITED FOR 27% OF SODA
SALES)
1. COCA-COLA 65%
2. PEPSI COLA 23%.
DATA ANALYSIS
Market share of Pepsi & Coke at Adityapur in Jamshedpur.
S. No.PePSICOKE1.66.62 %33.38%
Flavour Wise Comparison of Soft drinks at Adityapur in
Jamshedpur.
.
THUMS UP 20%PEPSI 20% MOUNTAIN DEW 8 % SPRITE 13% MIRINDA 10% 7
up6% SLICE12 % OTHERS 10 %
Overall Comparison of Pepsi & Coke at Adityapur in
Jamshedpur.
PEPSI 67 % COKE33 %
Comparison of Pepsi & Coke in Glass Bottles at Adityapur in
Jamshedpur.
PEPSI 67 % COKE33 %
Comparison of Pepsi & Coke in Pet Bottles at Adityapur in
Jamshedpur.
PEPSI 66 % COKE34 %
Comparison of Pepsi & Coke in Empty Bottles at Adityapur in
Jamshedpur.
PEPSI 58 % COKE42 %
Comparison of Pepsi & Coke in VG Chilling Equipment at
Adityapur in Jamshedpur.
PEPSI 48 % COKE52 %
Comparison of Pepsi & Coke in OYC Equipment at Adityapur in
Jamshedpur.
PEPSI 8% COKE11 %OWN81 %
Comparison of Pepsi & Coke in Service Frequency at Adityapur in
Jamshedpur.
PEPSI 58% COKE42 %
Comparison of Pepsi & Coke in Schemes at Adityapur in
Jamshedpur.
PEPSI 76 % COKE24 %
FINDINGS
FINDINGS
During (SIP) in PepsiCo pvt.Ltd. (jamshedpur) there was various
things to know about and learn which is not less than any
achievement. Apart from market survey I learned to keep Patience
and to communicate effectively with others.
Apart from these, I got an opportunity to work with good Employees
of PepsiCo, a multinational company which off course added value to
my learning. I also came to know about the culture and hierarchy
and working procedures of PepsiCo which itself is an achievement.
But I became confident in this area after doing summer internship
program (SIP).
Satisfaction level is also good. 60. The dealers want more
promotional scheme, gifts and quality service. 61. The dealers want
a soft strategy for replacement of lickage bottles. 62. As per I
have visited to dealers outlets, I found that most of the dealers
are selling only Pepsis products. 63. Some dealers are happy with
Pepsi products. They got the products by the company at the time
due to good distribution channel. CONCLUSION
Market share of Pepsi is increased because of effective
distribution channel and demand of the consumers. Since in
Jamshedpur and its surrounding area heat descends more as compared
to other parts of the states so obviously demand is more in this
region. The marketing activities of SMV beverages are good but
there is a need of some more promotional activities. Besides this
there is certain more conclusions which are as follows:-
1.Pepsi has got far better position and giving the tough
competition to its competitor coke.
2.Almost all the age group of the consumer like Pepsi and its
different flavors.
3.Mirinda is the market leader in orange flavour while Thumps-up is
the leader in sprit flavour and 7up is the leader in cloudy lemon
flavour.
4.In pet bottles segment Pepsi is dominating Pepsi has acquired
almost 70-75% share in this segment.
5. 200ml of almost all the flavor has got a significant position in
the market and are in high demand.
6.The young generation is very crazy about the Pepsi and its
various products because of its sponsharship of different cricket
tournament and bollywood stars like Ranbir kapoor, Dhooni Deepika
padukoan .
7.Pepsi "YEH PYAAS HAI BADI" and Yeh hai Youngistaan Meri jaan are
excellent.
RECOMMENDATION
Pepsi-Cola should improve the design of the package. As it is
advertised as the choice of new generation the design must be
looked young and fresh. So the colour should be more sharp and
attractive.
Distributors should given attention towards the retailers in rural
areas. As from the survey I found that majority of the retailers in
these areas preferred to sell Pepsis products inadequate in number
and on time.
I found that there is high demand for soft drinks products during
the summer season so by launching Mobile PepsiCo shop we can
attract new customers especially the college students.
As PepsiCo has always targeted the youth so new posters including
the recent cricketers endorsed for Pepsi AD can be distributed
among the retailers to attract the customer.
From a very long time PepsiCo products are coming with the same
type of carat. So there can be change in carats model as these are
also means of ads for a retail outlets.
BIBLIOGRAPHY
SITES VISITED
www.PepsiCo.com 64. www.Pepsizone.com 65. www.Pepsiindia.com 66.
www.google.comSWOT ANALYSIS
STRENGTHS OF PEPSICO:
Excellent brand image. 67. Having highest market share of 54% in
pet bottles. 68. Effective and stronger base in India than its
competitor like coke. 69. Its having very efficient distribution
system. E.g. there are seven distributors in Jamshedpur. 70. Having
large number of celebrity endorsed. 71. Introducing new flavors
time to time. 72. Having broader product line and outstanding
reputation.WEAKNESS OF PEPSICO:
Not able to keep the retailers satisfied in term of service, scheme
and offer. 73. Not having good provision for expiry and fusty
goods. 74. Most part of the city is not looked as the main city
that should be taken care because in those areas the service is
negligible. 75. Not having definite criteria for providing fridge,
dash boards, glow signs and paintings to the retailer. 76. Not
providing support material to the retailer. 77. Shortage of some
fast moving product during the season.OPPORTUNITIES FOR
PEPSICO:
PepsiCo can explore its distribution network in interior area. 78.
Consumers are showing more interests in PepsiCo products. 79. Focus
on most important customer trend- convenience. 80. Sufficient stock
of goods during season that can fulfill the demand of customers.
81. Improve service in some major areas where the distributor is
not available. 82. Promotional activities provide it an edge over
the competitors.THREATS FOR PEPSICO:
Competitive price may affect its profit margins. 83. Competitors
products already available in the market with similar schemes. 84.
Some potential dealers are not well satisfied with the services
which directly affect the sale of products. 85. Earlier religious
guru asking their followers not to consume soft drinks but after he
asked to consume colorless drinks. 86. Pesticide controversy taking
away the consumer.